The Securities and Exchange Commission (SEC) has identified the persistent surge in unclaimed dividends within the nation’s capital market, reaching an alarming N190 billion, as a consequence of inadequate identity management practices across the country.
In a recent statement during the second post Capital Market Committee (CMC) media briefing in Abuja on Friday, Mr. Lamido Yuguda, the Director-General of SEC, highlighted the role of identity-related challenges in driving this concerning trend.
Attributing the escalating figures to issues stemming from identity management, Yuguda also linked the rise to instances of multiple subscriptions during banking consolidation and identity management processes.
He acknowledged, “We have legacy issues that have exacerbated unclaimed dividends.”
Yuguda conveyed the commission’s collaborative efforts with the Nigeria Inter-Bank Settlement System (NIBSS) to address the matter through an enhanced e-dividend portal.
This portal, currently undergoing upgrades and repairs, aims to alleviate the issue by facilitating investors’ access to their dividends and ultimately curbing the proliferation of unclaimed dividends.
He emphasized, “We are diligently working towards diminishing the prevalence of unclaimed dividends.
This is why we are bolstering the e-dividend portal in conjunction with NIBSS, ensuring that investors promptly receive their entitled dividends.”
Addressing concerns regarding dollar-denominated bonds listed on NGX, Yuguda clarified that such bonds were not problematic as long as they were corporate in nature.
He acknowledged the upcoming challenges facing the market but expressed confidence that the capital market would play an integral role in supporting ongoing economic reforms.
He remarked, “We introduced the Know Your Customer (KYC) requirement to streamline information collection.
The market must make sacrifices to contribute to our nation’s transformative economic journey.”
Furthermore, Yuguda highlighted the significance of the Investments and Securities Bill (ISB) 2023 currently under consideration by the 10th National Assembly.
The bill seeks to modernize market regulations and maximize the capital market’s contribution to national development.
The director-general also urged market players to prioritize cybersecurity measures to safeguard critical financial data and transactions.
He expressed concern over the trend of companies opting to de-list from the capital market.
Mr. Dayo Obisan, the Commissioner of Operations at SEC, emphasized the challenge of enabling beneficiaries to access and claim their dividends.
He stressed the commission’s dedication to enhancing investor information, ensuring accurate bank details, and facilitating the seamless transfer of dividends.
Obisan affirmed the commitment to reducing unclaimed dividends through robust data management efforts.
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